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MIDD Q1 Earnings Beat Estimates on Food Processing Strength
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Key Takeaways
MIDD beat Q1 estimates as sales rose 15% and adjusted EPS increased 15.5% year over year.
Middleby's Food Processing sales jumped 33.7% as backlog reached a record $416 million.
MIDD raised full-year 2026 sales and earnings outlook amid backlog execution and pricing gains.
The Middleby Corporation (MIDD - Free Report) reported first-quarter 2026 adjusted earnings of $2.16 per share, which beat the Zacks Consensus Estimate of $1.94. The bottom line increased 15.5% year over year.
Net sales of $839.9 million topped the consensus estimate of $777.1 million and increased 15% year over year. The upside was driven by robust backlog conversion in the Food Processing segment, where backlog reached a record $416 million. MIDD’s organic sales increased 11.9%. Acquisitions increased sales by 1%, while movements in foreign currencies had a positive impact of 2%.
Middleby Sees Strength Across Segments
Effective from the fourth quarter of 2025, the company started reporting under two segments.
Sales from the Commercial Foodservice segment (representing 73.3% of net sales) were $615.5 million, up 9.4% year over year. Organic sales increased 8.1%. Foreign-currency translation had a favorable impact of 1.3%.
Sales from the Food Processing segment (26.7%) totaled $224.4 million, up 33.7% year over year. Organic sales increased 25% year over year. Acquisitions boosted sales by 4.5%, while foreign currency movements had a favorable impact of 4.2%.
The Middleby Corporation Price, Consensus and EPS Surprise
Middleby’s cost of sales increased 18% year over year to $516.7 million. Gross profit increased 10.5% to $323.2 million. The gross margin was 38.5%, down 150 basis points (bps) from the year-ago quarter.
Selling, general and administrative expenses increased 16.4% year over year to $188.3 million. Operating income increased 3% year over year to $133.4 million. Operating margin decreased 250 bps to 15.9%.
Adjusted EBITDA increased 11.8% year over year to $180.6 million. Adjusted EBITDA margin decreased 60 bps to 21.5%.
Balance Sheet and Cash Flow
Exiting the first quarter of 2026, Middleby had cash and cash equivalents of $177.1 million compared with $222.2 million at the end of 2025. Long-term debt was $1.83 billion at the end of the first quarter compared with $2.13 billion at 2025-end.
In the first three months of 2026, Middleby generated net cash of $87.8 million from operating activities compared with $137.3 million in the year-ago quarter.
In the first three months, its capital expenditure totaled $7.9 million compared with $26.5 million in the year-ago quarter. Free cash flow was $79.9 million compared with $110.8 million in the year-ago quarter.
Middleby Advances Portfolio Transformation
Middleby completed the sale of a 51% stake in its Residential Kitchen business during the quarter. The transaction generated net cash proceeds of $565 million, while the company retained a 49% ownership interest in the joint venture.
The company expects the planned Food Processing spin-off to close on July 6, 2026. Management stated that the separation will create two focused, standalone businesses with distinct growth and capital allocation strategies.
MIDD Raises 2026 Outlook
For the second quarter of 2026, Middleby expects total sales in the range of $815-$850 million. Adjusted earnings are projected between $2.27 and $2.39 per share.
Commercial Foodservice sales are expected in the range of $600-$620 million, while Food Processing sales are projected between $215 million and $230 million. Adjusted EBITDA is anticipated between $180 million and $192 million.
For full-year 2026, the company raised guidance and now expects total sales between $3.36 billion and $3.44 billion compared with prior expectations of $3.27-$3.36 billion.
Adjusted EBITDA is projected between $758 million and $790 million, while adjusted earnings are expected in the range of $9.54-$9.70 per share. Management expects continued benefits from pricing actions, backlog execution and ongoing share repurchases despite tariff and inflationary pressures.
MIDD’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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MIDD Q1 Earnings Beat Estimates on Food Processing Strength
Key Takeaways
The Middleby Corporation (MIDD - Free Report) reported first-quarter 2026 adjusted earnings of $2.16 per share, which beat the Zacks Consensus Estimate of $1.94. The bottom line increased 15.5% year over year.
Net sales of $839.9 million topped the consensus estimate of $777.1 million and increased 15% year over year. The upside was driven by robust backlog conversion in the Food Processing segment, where backlog reached a record $416 million. MIDD’s organic sales increased 11.9%. Acquisitions increased sales by 1%, while movements in foreign currencies had a positive impact of 2%.
Middleby Sees Strength Across Segments
Effective from the fourth quarter of 2025, the company started reporting under two segments.
Sales from the Commercial Foodservice segment (representing 73.3% of net sales) were $615.5 million, up 9.4% year over year. Organic sales increased 8.1%. Foreign-currency translation had a favorable impact of 1.3%.
Sales from the Food Processing segment (26.7%) totaled $224.4 million, up 33.7% year over year. Organic sales increased 25% year over year. Acquisitions boosted sales by 4.5%, while foreign currency movements had a favorable impact of 4.2%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Middleby’s Margin Profile
Middleby’s cost of sales increased 18% year over year to $516.7 million. Gross profit increased 10.5% to $323.2 million. The gross margin was 38.5%, down 150 basis points (bps) from the year-ago quarter.
Selling, general and administrative expenses increased 16.4% year over year to $188.3 million. Operating income increased 3% year over year to $133.4 million. Operating margin decreased 250 bps to 15.9%.
Adjusted EBITDA increased 11.8% year over year to $180.6 million. Adjusted EBITDA margin decreased 60 bps to 21.5%.
Balance Sheet and Cash Flow
Exiting the first quarter of 2026, Middleby had cash and cash equivalents of $177.1 million compared with $222.2 million at the end of 2025. Long-term debt was $1.83 billion at the end of the first quarter compared with $2.13 billion at 2025-end.
In the first three months of 2026, Middleby generated net cash of $87.8 million from operating activities compared with $137.3 million in the year-ago quarter.
In the first three months, its capital expenditure totaled $7.9 million compared with $26.5 million in the year-ago quarter. Free cash flow was $79.9 million compared with $110.8 million in the year-ago quarter.
Middleby Advances Portfolio Transformation
Middleby completed the sale of a 51% stake in its Residential Kitchen business during the quarter. The transaction generated net cash proceeds of $565 million, while the company retained a 49% ownership interest in the joint venture.
The company expects the planned Food Processing spin-off to close on July 6, 2026. Management stated that the separation will create two focused, standalone businesses with distinct growth and capital allocation strategies.
MIDD Raises 2026 Outlook
For the second quarter of 2026, Middleby expects total sales in the range of $815-$850 million. Adjusted earnings are projected between $2.27 and $2.39 per share.
Commercial Foodservice sales are expected in the range of $600-$620 million, while Food Processing sales are projected between $215 million and $230 million. Adjusted EBITDA is anticipated between $180 million and $192 million.
For full-year 2026, the company raised guidance and now expects total sales between $3.36 billion and $3.44 billion compared with prior expectations of $3.27-$3.36 billion.
Adjusted EBITDA is projected between $758 million and $790 million, while adjusted earnings are expected in the range of $9.54-$9.70 per share. Management expects continued benefits from pricing actions, backlog execution and ongoing share repurchases despite tariff and inflationary pressures.
MIDD’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.